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5 Reasons Why Traders Lose

  • #121
  • Dec 25, 2013 12:55am Dec 25, 2013 12:55am
Quoting 60minuteman
{quote} So 300 pips profit a week with 20% win rate doesn't appeal?

Pretty good but one has to be very self disciplined to position trade plus you need a large account balance as one needs to set big SL - nothing wrong with it though - probably the best way to trade!

What I was talking about is intraday trading where one is normally looking to rake off 30 - 40 pips and close the trade same day. Most small traders prefer this kind of trading so in that case I was suggesting a "business plan" if one is going to open a lot of trades per week
  • #122
  • Dec 25, 2013 1:21am Dec 25, 2013 1:21am
Quoting shellsnail
{quote} I feel that this is more of a symptom of deeper issues rather than a problem with itself. What it boils down to is a lack of understanding of the limits of the system you are trading, and the kind of market condition you are trading in. It might not be a wrong thing to move your SL or add to a loser if market conditions suggest that might be the right thing to do or if these are built into your system and you know the LIMITS of such processes. Cheers. In other words, I think the primary technical reason for failure is the the lack of appreciation...
I couldn't agree with you more...that is so true
  • #123
  • Dec 25, 2013 2:00am Dec 25, 2013 2:00am
Not having a plan or even if having a plan do not follow it , I have been guilty of this too
  • #124
  • Dec 25, 2013 2:41am Dec 25, 2013 2:41am
Commitment...commitment..commitment...persistent..persistent..persistent..
easy to write..hard to execute
  • #125
  • Dec 25, 2013 3:35am Dec 25, 2013 3:35am
Quoting jmtini
{quote} Pretty good but one has to be very self disciplined to position trade plus you need a large account balance as one needs to set big SL - nothing wrong with it though - probably the best way to trade! What I was talking about is intraday trading where one is normally looking to rake off 30 - 40 pips and close the trade same day. Most small traders prefer this kind of trading so in that case I was suggesting a "business plan" if one is going to open a lot of trades per week
most small traders think it's the easiest way to make money that's why... A business plan is a good idea.

You need to be disciplined for any type of trading.

And you dont need a bigger account or bigger SL for Position trading..

Go back 1 month, put the trades you took on the charts again, would any of them still be alive now? what would the profit be on those trades?

happy crimbo mate, good luck 2014
tradewith60
  • #126
  • Dec 25, 2013 3:39am Dec 25, 2013 3:39am
Failing to Adapt to the Market
  • #127
  • Dec 25, 2013 4:19am Dec 25, 2013 4:19am
Quoting 60minuteman
{quote} most small traders think it's the easiest way to make money that's why... A business plan is a good idea. You need to be disciplined for any type of trading. And you dont need a bigger account or bigger SL for Position trading.. Go back 1 month, put the trades you took on the charts again, would any of them still be alive now? what would the profit be on those trades? happy crimbo mate, good luck 2014
So, how much do i need to start ..
  • #128
  • Dec 25, 2013 8:19am Dec 25, 2013 8:19am
1. Zero sum game

2. Wrong expectations

3. Information asymmetry

4. Guessing

5. Statistical odds
  • #129
  • Dec 25, 2013 9:36am Dec 25, 2013 9:36am
Quoting com37
{quote} So, how much do i need to start ..
3k...

I would suggest reading Equity Millipede thread on FF... If it appeals
tradewith60
  • #130
  • Dec 25, 2013 9:50pm Dec 25, 2013 9:50pm
Quoting 60minuteman
{quote} 3k... I would suggest reading Equity Millipede thread on FF... If it appeals

Will definetly read that..thank youuuuu
  • #131
  • Dec 25, 2013 11:57pm Dec 25, 2013 11:57pm
Baby Pips recently added this. "One big reason people lose is because they stare at charts more than that they do at boobs."
The Thief of Wall Street
  • #132
  • Dec 26, 2013 1:08am Dec 26, 2013 1:08am
Quoting Cowboy11
Thanks a lot, my brother Hanover. Let me figure out whether it make any sense in term of actual operation.
RR: Ratio of Return.
1. It is just a statistic figure to measure your own performent. It cant be used as an operation target, when time appropriate to close a trade, just close to maximize your profit.
2. Different currency pair has different RR potential on different period of time.
In stead of RR, I think that it is better to measure how much you have capture in a specific time period. Eg. Week high/low is 1.3800/1.3500. What is your performent? xxx/300. Operation and measure yourself week by week. Review your operation in that specific period of time and make improvement accordingly.
Face both Win and Lose bravely
  • #133
  • Dec 26, 2013 1:57am Dec 26, 2013 1:57am
Quoting Cowboy11
{quote} RR: Ratio of Return. .............
Typo ............................ its Rate of Return
The Thief of Wall Street
  • #134
  • Dec 26, 2013 2:31am Dec 26, 2013 2:31am
Quoting Chicky
{quote} Typo ............................ its Rate of Return
Thanks a lot........
Face both Win and Lose bravely
  • #135
  • Dec 26, 2013 2:58am Dec 26, 2013 2:58am
Quoting Cowboy11
{quote} RR: Rate of Return. 1. It is just a statistic figure to measure your own performent. It cant be used as an operation target, when time appropriate to close a trade, just close to maximize your profit. 2. Different currency pair has different RR potential on different period of time. In stead of RR, I think that it is better to measure how much you have capture in a specific time period. Eg. Week high/low is 1.3800/1.3500. What is your performent? xxx/300. Operation and measure yourself week by week. Review your operation in that specific...
Just imaging, if the week only 1.3800/1.3700, you bound to have a very poor RR.
It has to do with currency pair selection. So, how to avoid this type of situation. Do home work over the weekend, wider currency pair selection......... This is also difficult, right???????????
Face both Win and Lose bravely
  • #136
  • Dec 26, 2013 3:05am Dec 26, 2013 3:05am
Topic of this thread: 5 reasons why traders lose

What the forex propaganda machine does not want you to know.

Why the majority of traders must lose.

Speculating / trading is a lot like prostitution.
If you are NOT a losing trader, you are not doing your job. Bad on you.
To be of benefit to a society in a free market economy speculators MUST LOSE.
90 % of traders (the losers) are doing their job to help the economy -- they facilitate price discovery, bear the risk and provide liquidity for the benefit of the producers: the REAL CONTRIBUTORS TO SOCIETY.
Speculators / traders are a necessary evil. They are the whores of the financial world. And in the same way as in prostitution, a market economy must tolerate traders -- as long as they fulfill their role, that is, to lose to the producers.
Without this grease on its many wheels the free market would grind to a halt.
  • #137
  • Dec 26, 2013 3:12am Dec 26, 2013 3:12am
Quoting Mingary
Topic of this thread: 5 reasons why traders lose What the forex propaganda machine does not want you to know. Why the majority of traders must lose. Speculating / trading is a lot like prostitution. If you are NOT a losing trader, you are not doing your job. Bad on you. To be of benefit to a society in a free market economy speculators MUST LOSE. 90 % of traders (the losers) are doing their job to help the economy -- they facilitate price discovery, bear the risk and provide liquidity for the benefit of the producers: the REAL CONTRIBUTORS TO SOCIETY....
May I humbly ask your profession?
The Thief of Wall Street
  • #138
  • Dec 26, 2013 3:16am Dec 26, 2013 3:16am
Quoting Chicky
{quote} May I humbly ask your profession?
I'll tell you mine, if you tell me yours (:

I am a solution architect for a major software company.
  • #139
  • Dec 26, 2013 3:18am Dec 26, 2013 3:18am
Quoting Mingary
{quote} I'll tell you mine, if you tell me yours (: I am a solution architect for a major software company.
I am a prostitute.

Nice to hear about you. Just asked because you looked familiar.
The Thief of Wall Street
  • #140
  • Dec 26, 2013 3:24am Dec 26, 2013 3:24am
Quoting Chicky
{quote} I am a prostitute. Nice to hear about you. Just asked because you looked familiar.
What I meant is that I have a REAL job...

Something tells me you want to claim you are a bad prostitute (that is you are NOT doing your job). If that is the case I hope the big forex pimp never catches you (:
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